chapter  20
4 Pages


Many years ago, I ran New York State’s bank for economic development. To finance our loans, we issued tax-exempt municipal bonds. The first time I issued a bond, I went to talk to the State Budget Director to discuss the type of information I should include in our disclosure document. My agency’s bonds were guaranteed by a specific provision of the state constitution. So, the state, itself had to prepare its own disclosure document, which is how the Budget Director was involved. However, even so, my agency had to disclose too. During this process, the Budget Director gave me advice that I have never forgotten. He said: “Whenever you are in doubt about disclosing a matter, err on the side of disclosure.” I pass this great advice along to you.